The Dow Jones industrial average fell 250 points,
pushing its three-day points losses above 2,000 points. The 30-stock index also traded about 10 percent below a record high set last month.
The S&P 500 pulled back 0.9 percent, with utilities as the worst-performing sector. The Nasdaq composite pulled back 0.7 percent after dropping more than 1 percent.
Global markets also fell sharply. The German Dax dropped 2.4 percent, while the French CAC 40 fell 2.6 percent. In Asia, the Japanese Nikkei 225 plunged 4.7 percent, while the Shanghai composite pulled back 3.4 percent.
On Monday, the Dow dropped 1,175.21 points, having briefly declined more than 1,500 points during the session. Other major indexes closed sharply lower. The sell-off kicked into action on Friday, after the latest nonfarm payrolls report saw interest rates in the U.S. jump.
This pullback comes after a rip-roaring start to the year for stocks. The Dow and S&P 500 notched all-time highs as well as sharp gains for January.
Latest update: Stocks slump as selloff deepens, sources say Bannon may refuse to testify before House committee and Uber plans to launch air taxis by 2025. Watch
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